FirstFT: JPMorgan boss issues warning on US-China tensions

Good morning. Jamie Dimon has warned that tensions between the US and China have upended the worldwide order, making it extra advanced for enterprise than through the chilly warfare.

The JPMorgan chair was talking at a banking convention in Shanghai, as recent information confirmed the restoration of the world’s second-largest financial system was slowing. Dimon additionally argued that “uncertainty” attributable to Beijing may hit investor confidence.

“Hopefully, we are able to work out all these variations, , with China and America and what it’s doing to different allies, relationships and issues like that,” he mentioned in feedback behind closed doorways.

Dimon’s first go to to mainland China in 4 years got here as a contraction in Chinese language manufacturing exercise solid doubt over the nation’s progress prospects, shaking regional fairness markets towards the backdrop of worsening relations with the US.

In the meantime, the US-China geopolitical rift continues to impression the monetary business in each nations. Simply earlier this week, Goldman Sachs’s non-public fairness enterprise in Asia mentioned she has stopped making an attempt to lift cash within the US.

Right here’s what else I’m conserving tabs on at this time:

• Nato assembly: Overseas ministers will meet in Oslo to debate the Ukraine warfare as current proof exhibits that Kyiv’s long-awaited counter-offensive is about to get below manner.

• Manufacturing information: Buying managers’ index figures can be launched for Japan, China, the EU and UK.

• Eurozone inflation: Falling inflation in France and Germany has boosted hopes that at this time’s eurozone inflation figures will present cooling costs.

• Brics assembly: Overseas ministers will collect in Cape City for geopolitical discussions. Ministers will even evaluation functions of at the least 20 nations as they take into account rising the dimensions of the group. (The Japan Occasions)

5 extra high tales

1. US Home Speaker Kevin McCarthy predicted a invoice to avert a harmful default would “overwhelmingly” clear a vote within the decrease chamber of Congress as he raced to safe backing for the bipartisan deal. The vote at this time will mark a vital second for McCarthy and whether or not the US will hit the debt ceiling.

2. Financial institution of Japan coverage shift dangers inflicting eurozone bond turmoil, the European Central Financial institution has warned. If the BoJ ends its ultra-loose financial coverage Eurozone bond markets are liable to a sell-off attributable to a sudden retreat of Japanese buyers, the ECB mentioned.

3. A federal trial over Beijing’s alleged makes an attempt to forcibly repatriate residents started in Brooklyn on Wednesday. The case centres on a former New York police officer and two Chinese language nationals accused of trying to intimidate a Chinese language dissident and his household within the US. Learn the complete story.

4. A Chinese language fighter jet carried out an “unnecessarily aggressive manoeuvre” close to a US navy plane that was flying over the South China Sea final week, the Pentagon mentioned. Video footage of the incident — the newest in quite a lot of comparable encounters — was launched as US defence secretary Lloyd Austin was en route to go to Japan, Singapore and India.

5. A failed North Korean satellite tv for pc launch triggered air raid sirens and an evacuation order in Seoul yesterday, however the order was retracted about 10 minutes later after South Korean authorities admitted it was a “false alarm”.

Deep dive

Fearing a possible battle in Asia, western corporations need to transfer manufacturing out of Taiwan, however turning away from the self-ruled island will come at a excessive worth for producers. Discover how Taiwan turned an indispensable financial system for the manufacturing of every little thing from Chinese language smartphones to US fighter jets on this visible story.

We’re additionally studying . . . 

Chart of the day

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Simply as Singapore Airways was giving workers an eight-month wage bonus after report income, Hong Kong was freely giving greater than 4,400 free tickets for regional rival Cathay Pacific. Their monetary divergence displays Singapore’s post-pandemic success as Hong Kong struggles to recuperate.

Take a break from the information

. . . and meet the girl dressing Gen Z. Sofia Prantera created streetwear label Aries as a transfer into denim with a extra high-fashion providing. On this glorious profile of Prantera, vogue author Kate Finnigan explains how Aries gained a cult following with younger folks.

Further contributions by Amy Bell and Tee Zhuo